The Tracking Error of an Optimized Portfolio Can Be Expressed

question 42

Multiple Choice

The tracking error of an optimized portfolio can be expressed in terms of the ____________ of the portfolio, and thus reveals ____________.

• A)return; portfolio performance
• B)total risk; portfolio performance
• C)beta; portfolio performance
• D)beta; benchmark risk

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Definitions:

Authentic

Something genuine, not copied or false; true to one's own personality, spirit, or character.

Community

A group of people living in the same place or having a particular characteristic in common.

Argument from Analogy

A form of reasoning in which a similarity between two or more things is used to suggest that what is true of one thing must also be true of the others, especially in cases lacking direct evidence.

Other Minds

The philosophical problem concerning the nature of understanding or knowing the existence of and thoughts or feelings of others.